CrossAmerica Partners(US:CAPL)2023-05-08 16:00Financial Performance - Operating revenues for Q1 2023 were $1,016,159, a decrease of 7.1% compared to $1,093,211 in Q1 2022[70] - Gross profit increased to $82,059 in Q1 2023, up from $78,830 in Q1 2022, reflecting a growth of 4.0%[70] - Operating income for Q1 2023 was $9,110, slightly down from $9,719 in Q1 2022, representing a decrease of 6.3%[70] - Net loss for Q1 2023 was $(979), compared to a net income of $5,047 in Q1 2022, indicating a significant decline[71] - Basic and diluted loss per common unit was $(0.04) in Q1 2023, compared to earnings of $0.13 in Q1 2022[70] - EBITDA for Q1 2023 was $29.2 million, compared to $30.1 million in Q1 2022, reflecting a decrease of $0.9 million[33] - Distributable Cash Flow for Q1 2023 was $19.1 million, down from $24.2 million in Q1 2022, indicating a decrease in cash available for distributions[33] - The Distribution Coverage Ratio for Q1 2023 was 0.96x, compared to 1.22x in Q1 2022, suggesting a decline in the ability to cover distributions[33] Cash Flow and Liquidity - Net cash provided by operating activities decreased to $11,538 in Q1 2023 from $28,388 in Q1 2022, a decline of 59.3%[71] - Cash and cash equivalents at the end of Q1 2023 were $7,517, down from $11,149 at the end of Q1 2022[71] - The company expects ongoing liquidity sources to include cash generated from operations and proceeds from real estate sales[37] Expenses and Liabilities - The company reported a total operating expense of $71,182 in Q1 2023, an increase from $68,867 in Q1 2022, reflecting a rise of 4.8%[70] - Interest expense increased significantly to $(12,012) in Q1 2023 from $(6,661) in Q1 2022, marking an increase of 80.5%[70] - Total liabilities decreased from $1,175,465 thousand as of December 31, 2022, to $1,168,155 thousand as of March 31, 2023, a reduction of about 0.6%[81] - Total debt and finance lease obligations as of March 31, 2023, amounted to $791.3 million, with a current portion of $2.9 million[26] Assets and Equity - Total current assets decreased from $118,406 thousand as of December 31, 2022, to $111,492 thousand as of March 31, 2023, a decline of approximately 5.4%[81] - Total equity decreased significantly from $52,977 thousand as of December 31, 2022, to $28,827 thousand as of March 31, 2023, representing a decline of approximately 45.6%[81] - Cash and cash equivalents dropped from $16,054 thousand to $7,517 thousand, a decrease of about 53.1%[81] Operational Highlights - The Partnership amended its CAPL Credit Facility, increasing the senior secured revolving credit facility from $750 million to $925 million[100] - The Partnership's wholesale business purchased approximately 80% of its motor fuel from four suppliers for the three months ended March 31, 2023[92] - The Partnership's merchandise purchases from one supplier accounted for approximately 47% for the three months ended March 31, 2023[93] - The company completed an acquisition of assets from CSS for $27.5 million on November 9, 2022, which included wholesale fuel supply contracts for 38 dealer-owned locations[116] Market and Risk Factors - The company anticipates that market developments may cause estimates to change, highlighting risks such as motor fuel price volatility and competition[218] - The company has minimum volume purchase requirements under fuel supply agreements but did not incur any significant penalties during the three months ended March 31, 2023, or 2022[196] Other Financial Metrics - The effective interest rate on the CAPL Credit Facility was 4.98% as of March 31, 2023, with an applicable margin of 2.25%[151] - The amount of availability under the CAPL Credit Facility was $142.5 million as of March 31, 2023, after considering debt covenant restrictions[152] - The company recorded an income tax benefit of $1.7 million for the three months ended March 31, 2023, compared to $1.9 million for the same period in 2022[172]